Key Points:
- Dmail will close on May 15 after five years of operation
- The project could not cope with costs, monetization, and tokenomics
- The DMAIL token dropped nearly 70% in a day and hit a new low
The Dmail team stated that the project is closing due to high expenses and issues with the business model
Dmail Network, a decentralized email service, announced a gradual shutdown. Starting May 15, the service will begin to close down. The project lasted about five years.
The team tried to create a “truly decentralized email.” But in the end, the project could not make it.
The main problem turned out to be costs. Supporting decentralized infrastructure was too expensive. This includes traffic, data storage, and computing. All of this consumed most of the budget.
As the number of users grew, the situation only got worse. Expenses grew too quickly, and a sustainable model could not be built.
Monetization also did not work out. The team tried different paid models, but none took hold. Users were not willing to pay.
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There were also problems with the token. DMAIL never found a clear use case. The project economy did not work as the developers expected.
Internal problems added extra pressure. Part of the team left, and the remaining resources were not enough to maintain the infrastructure. The project also failed to attract new funding and failed in attempts to sell.
Users were given time until May 15. By this date, they need to export their emails. After that, nodes will be shut down and access to data will be lost.
The team admitted that this outcome was expected. They note that similar problems exist for other Web3 projects in the communications sector.
They cite Lens and Friend.tech as examples. These platforms also faced difficulties in attracting users and building a sustainable revenue model.
“If conditions change, we hope to return in a more mature form. But for now, we must accept reality,” the developers said.
The team added that the cryptocurrency market should pay more attention to the products themselves, not just their price.
Against this backdrop, the DMAIL token plummeted. In the past day, it lost nearly 70% and is trading around $0.000167.
From its peak, the drop is almost complete. After launching in early 2024, the token rose to $0.97. Now its market cap has fallen below $15K.
